India's Bosch posts smallest rise in profit in five quarters

BOSCH

06/08/2024 15:35

BENGALURU, Aug 6 (Reuters) - Auto parts-maker Bosch  BOSH.NS , the Indian unit of German automotive
supplier Robert Bosch GmbH, reported its smallest profit climb in the last five quarters on Tuesday as its
inventory built up due to slow retail sales of cars.
    Its net profit rose almost 14% year-on-year to 4.66 billion rupees ($55.5 million) in the first quarter
ended June 30.
    The company's revenue increased about 4% to 43.17 billion rupees, it said.
    
    KEY CONTEXT
    Bosch makes auto parts and accessories for cars, two wheelers and railways, among others. Its automotive
products business accounts for about 87% of the total revenue.
    Retail car sales fell in May and June due to heatwaves, but rose in April. Due to this, inventory for
automakers increased and dampened demand for Bosch's products.
    Its quarterly revenue growth was driven by a 16.1% climb in automobile production. Production had risen
21.2% in the March quarter, according to industry data.
    
    PEER COMPARISON
                                   Valuation     Estimates (next 12         Analysts' sentiment         
                                   (next 12           months)                                           
                                    months)                                                             
                      RIC        PE     EV/EBI  Revenue     Profit    Mean     # of      Stock to       Div
                                        TDA     growth      growth    rating*  analysts  price          yield
                                                                                         target**       (%)
 Bosch                 BOSH.NS   45.78   37.33    11.71      26.46    Hold            4      1.24           1.07
 Samvardhana           SAMD.NS   25.42   10.32    16.66      46.04    Buy            19      1.02           0.46
 Motherson                                                                                              
 International                                                                                          
 Sona BLW Precision    SONB.NS   49.31   29.70    24.88      55.37    Buy            17      0.90           0.46
 Forgings                                                                                               
 UNO Minda             UNOI.NS   47.20   27.40    17.48      25.57    Buy            17      1.02           0.21
    * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    APRIL-JUNE STOCK PERFORMANCE
    
    
    -- All data from LSEG IBES
    -- $1 = 83.9152 Indian rupees
    

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 (Reporting by Varun Hebbalalu in Bengaluru; Editing by Shreya Biswas)
 ((varunvyas.hebbalalu@thomsonreuters.com;))